Recent news of Stellantis giving up on that whole “completely electric” thing hardly comes as a surprise. In fact, the auto giant held out longer than some. Mercedes-Benz, for instance, was hoping to be 50% electric by 2025, but, here we are in 2025, and the brand’s ICE/BEV sales ratio is more than 10 to one, and the brand has scaled back plans for the electric-only EVA2 platform. General Motors was ready to jump in with both feet, announcing intentions in 2020 to release 30 new EVs by 2025, only to pivot to hybrids as EV sales slowed.
At Stellantis, the ambitious Dare Forward 2030 plan aimed to make the brand electric-only in Europe by the end of the decade, with 50/50 ICE/EV sales in the US. Recent reports of the Ram 1500 REV being officially dead and the return of the Hemi, feel more like confessions than announcements. When you look at the writing on the wall, it’s hard to blame automakers for jumping off the EV bandwagon and quitting while they’re ahead.
What’s Going On With The EV Market In 2025?
Cox Automotive estimates a total 310,839 EV US sales for the second quarter in 2025. A year prior, that number was sitting pretty at 331,853, making for a 6.3% dip in sales. That might not sound like a huge drop-off, but it’s worrying when you consider the optimism with which automakers started this decade. The promises made back in 2020 and 2021 were based on projections of the 2010s as an era of constant growth for the segment.
EVs aren’t going anywhere, but a quick glance at sales numbers for EVs in the first half of 2025 reveals a few automakers firmly planted in positions to lead the electric segment.
|
Model Name |
Total First-Half Sales 2025 |
|
Tesla Model Y |
150,171 |
|
Tesla Model 3 |
101,323 |
|
Chevrolet Equinox EV |
27,749 |
|
Ford Mustang Mach-E |
21,785 |
|
Hyundai Ioniq 5 |
19,092 |
|
Honda Prologue |
16,317 |
|
Ford F-150 Lightning |
13,029 |
|
BMW i4 |
12,849 |
|
Chevrolet Blazer EV |
12,736 |
|
Nissan Ariya |
11,619 |
Total first-half US sales for EVs for 2025 come out to 607,082. Nearly half of those sales are for Tesla, which sold 271,635 units in the first half of the year. The Cybertruck has turned out to be, let’s face it, a major disappointment, and nobody has benefited from that flop more than Ford, claiming first-place in the electric pickup segment just as they do for ICE trucks. The Mustang Mach-E remains a popular seller, as well.
The King Stays The King
The top-five sellers currently look like this.
- Tesla – 271,635 units sold in H1 2025
- Chevrolet – 47,639 units sold in H1 2025
- Ford – 38,988 units sold in H1 2025
- Hyundai – 28,407 units sold in H1 2025
- BMW – 24,632 units sold in H1 2025
From there, it’s diminishing returns all the way down. Audi has released some of our favorite electric vehicles in recent years, like the Q8 e-Tron, but the brand only sold 11,559 EVs in the first six months of the year. Mercedes only sold 8,083 EVs in the first six months of the year, less than half the number of electric vehicles they moved in 2024.
Even with automakers backpedaling, canceling EVs, and scratching ambitious plans to go fully electric, the market remains over-saturated with vehicles that simply never had a shot of dominating their segments for any number of reasons. Add to that, the early adopter boom is over. Everyone who wanted an electric car for the excitement of driving an electric car already has one, and newer models don’t seem to be creating new EV fans.
Q3 Looks Good, Q4 Looks Bad
Kelley Blue Book foresees Q3 EV sales blasting off like a rocket, and it’s not just the Blue Book saying it. John Vincent, Senior Editor/Vehicle Testing for US News & World Report, recently told us that “Demand for new cars has been artificially boosted for the last several months, first with shoppers trying to beat the Trump import taxes, and now by the expiring federal EV tax credit. Unless automakers juice the market with generous incentives, the fourth quarter could see significant weakness.”
So we’re looking at a boom-and-bust to finish out 2025. The expiring federal EV tax credits have proven to be just the push many drivers needed to finally get around to buying themselves an electric vehicle. The market is likely to correct itself in due time. No dealer wants to watch a lot full of cars sit around collecting dust. But, the only way to ensure you’re getting your full $7,500 tax credit is to act now. The deadline has proven to be a swift kick in the rear for “one of these days” buyers.
There are still state-level incentives to claim, but, by and large, demand will likely continue to dry up, and, with diminished demand, automakers will find themselves less interested than ever in providing the supply.
What Does The Future Of The Electric Segment Look Like?
In the short term, it’s safe to bet that 2025 is going to have a record high third-quarter for electric vehicle sales in the US. Then, you’re going to see a sudden drop-off in the fourth quarter as the federal credits go away. From there, you can expect sellers to try and offload inventory with steep discounts.
We wouldn’t hold our breath waiting for those discounts to meet the $7,500 credit one-to-one. For that matter, state-level incentives can only do so much of the heavy lifting, as US News‘ John Vincent tells us, “Many states already have incentive programs for EV buyers, but $7,500 per vehicle is a lot for a state to offer. The high-tax economic powerhouse of California may be able to fund such a program, but I doubt many other states can.”
So, states that have the economic muscle to offer $7,500 in discounts might not have the political incentive to do so, and states that are politically inclined to help the EV industry along might not have the economic muscle to make up the difference. Three, four years down the line, our next president may even wish to reinstate the EV credit, or launch a similar incentive, but, for the time being, we have to consider that $7,500 offer dead and buried.
EVs Aren’t Going Away
It’s worth noting that no major automaker has vowed to abandon the EV segment entirely. What we’re seeing instead is a curbing of that initial enthusiasm.
For some automakers, the news has been more good than bad. For instance, Chevrolet more than doubled its H1 sales for 2025 for EVs like the electric Blazer, claiming a 9.2% market share. You don’t need four years of business school to guess that Chevy is going to try and capitalize on that momentum in the coming years.
We’re definitely going to see a lot of dealers failing to make their Q4 electric sales goals, but, from there, there’s no reason to think the market won’t settle to a steadier pace, no longer inflated by EV credits or early adopters, or suffering the rapid decline that comes with EV credits being revoked.
In short, the market is still there, but the gold rush is over. The buying public has spoken, and the message is, “we’ve got more than enough EVs for now, but thanks anyway.”
Sources: Cox Automotive, Kelley Blue Book, US News & World Report.
